Tuesday, November 2, 2010

Barclays (NYSE:BCS) sees the projected growth rate of Sunoco Logistics Partners (NYSE:SXL) as being conservative, and believe guidance is lower than what the sustainable growth rate of the company will be over the long term.

" While '11 distribution growth guidance is below consensus, SXL should still post above-average growth. We believe 6% guidance in '11 is conservative, as SXL will generate incremental cash flow from $400MM of expansion capex in '10. We expect 7.5% growth in 2011 and view 6% as more of a long-term sustainable growth rate for SXL," said Barclays.